Tesla Gigafactory: Wage increase without works council divides the workforce
10.12.2025 - 03:10:11
Germany's works councils act as crisis managers in turbulent times. Tesla is pushing through wage increases without a union, while VW is fighting for jobs and Fraport elections have been stopped.
 Tesla Gigafactory: Wage increase without works council divides the workforce - Photo: via boerse-global.de
Germany is currently experiencing an extraordinary December for company co-determination. While the regular works council elections are not due until spring 2026, early elections, start-ups and internal power struggles in key companies are making headlines. The developments at Tesla, Volkswagen and Fraport show that employee representation is facing a turning point.
Tesla pays 4 percent more - and bypasses the union
The Gigafactory in Grünheide is currently the scene of the most prominent conflict. Tesla announced a 4 percent salary increase for all employees earlier this week, retroactive to December 1. What sounds like good news has a catch: The increase took place without any involvement of the works council or IG Metall.
"We have implemented this adjustment independently and without union influence, as in previous years," explained Tesla personnel manager Erik Demmler. IG Metall sees it differently – and sharply. Jan Otto, district manager of IG Metall Berlin-Brandenburg-Saxony, calculates: Despite the increase, compensation at Tesla is still 30 to 35 percent below the level of comparable collective agreements in the industry.
What is behind this strategy? Observers see the unilateral action as an attempt to systematically weaken trade union influence. Confronted with accusations of "union busting" and unwilling to negotiate collectively, Tesla is heading for a crucial test – in the run-up to the 2026 elections, of all things. |
Tesla Gigafactory: Wage increase without works council divides the workforce - Photo: via boerse-global.de